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I Owe $XX,XXX in taxes! Help!

Discussion in 'Business & Tax Advice' started by consus, Apr 17, 2011.

  1. consus

    consus Junior Member

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    So I just did my taxes. 2010 was my first year with affiliate marketing and I didn't think about taxes at all until I used TurboTax to fill out my tax forms. Now I owe over a third of my income to the government. I have negligible expenses compared to what I made. Is there anything I can do before I file my taxes on Monday? Investments? IRA?

    I have an appointment with a CPA on Monday, but I want to get an idea of what I might be able to do before that.
     
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  2. flyingbear

    flyingbear Junior Member

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    you could claim home office as expense.
     
  3. fnd80

    fnd80 Regular Member

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    edit: oops. bad advice. you're screwed. sorry! :)
     
    Last edited: Apr 17, 2011
  4. compton13

    compton13 Junior Member

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    Dont take this advice taxes are due on April 18th, whether you file an extension or not. If you have cash, then look at a SEP IRA, if you are self employed due to affiliate income, you can put up to 25% or up to 49000 which ever is more I believe for 2010. Your tax advisor can help you with this and you can still open the IRA and make a contribution on the 18th. You can also make your personal contribution of 5k if you are under 50. These should help you relieve your tax burden.
     
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  5. phluid

    phluid Power Member

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    Maybe you should be sure of what you are talking about before you give out info/advice. You absolutely can file an extension and I do every year for personal and business both. I don't know what the exact deadline will be if you file an extension but it will be in October.
     
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  6. compton13

    compton13 Junior Member

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    "When you file for an extension, you're simply asking for more time to complete your tax forms. The IRS is not granting you more time to pay any taxes that are due. If you owe taxes as of April 15, expect to pay interest - and possibly a penalty - on the amount due if you choose to take the extension. "

    hxxp://www.investopedia.com/articles/pf/07/taxextension.asp

    I do this for a living, just not personal taxes, but your CPA will be able to help you.
     
  7. 7878

    7878 Executive VIP Premium Member

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    Seek the advice of a tax professional and don't ask these types of questions on a marketing forum at the 11th hour. :)
     
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  8. _Sunny_

    _Sunny_ BANNED BANNED

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    7878 is correct....what you'll get here is amateur suggestions.
    hire some professionals and they'll save you some money.

    btw,if you got contacts overseas, you can ask a w8/w9 form filled n mailed by them or you can even pay someone for that.
     
  9. eloquenceeee

    eloquenceeee Regular Member

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    7878 gave you the best advice there is.

    Legal advice shouldn't come from an online forum.
     
  10. phluid

    phluid Power Member

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    So how are you going to pay them if you haven't even completed them? You just pay a random amount and hope uncle same is ok with it? I have done it and so have many others that I know and I have never had a penalty.

    As everyone else said, get an accountant. I wasn't telling you what to do, just saying that someone else was definitely wrong. I would get recommendations from people you know and then make sure to visit a couple and pick one who you are comfortable with. I saw 5 or 6 before deciding which one to go with, I guarantee they were all good but I picked the one I felt had more experience with my needs.


     
  11. efwebs

    efwebs Regular Member

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    Well he got the advice "seek professional help" from a forum, so....

    Anyway, a tax professional can help you uncover some deductions like a home office (portion of your rent or mortgage, utilities, office furniture, computer equipment, etc). But you can get the same advice from a book from the library in my opinion.

    IRA is great if you have money to put into it - but if you are penniless you can't really start moving money around to pay less taxes. In other words, it does no good to put 3k in an IRA to save 1k on taxes...if you had the 3k you would just pay the 1k in taxes.

    And yes, for an extension you still have to pay ESTIMATED taxes. Most people that file an extension are getting refunds and are just lazy. If you owe a lot, they will charge you interest for not being more reasonable with your estimate.
     
  12. blackhataffiliate

    blackhataffiliate Senior Member

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    Not trying to state the obvious, but sometimes simple things get overlooked. You need to make sure you have deducted all subscriptions, domains, hosting, etc. Do you have a room that is dedicated to work? If so you get to have a home office deduction. You need to speak to a tax adviser and get this resolved asap.
     
  13. multimedia

    multimedia Power Member

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    Someone tell me if Outsourcing costs can be decucted as well. How about Adwords costs?
     
  14. blackhataffiliate

    blackhataffiliate Senior Member

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    These are costs of doing business, so they would be deductible.
     
  15. richelld

    richelld Junior Member

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    just dont pay. build up a massive debt to them and then when your ready to make the decision to keep living in whats rapidly becoming a turd-world country you can negotiate a settlement

    the money you saved can go along way somewhere else

    if you bring $100,000 to thailand or philippines you'll be retired and your future generations will be inheriting it for the next 250 years

    i recommend living in whats already a turd-world, the people are friendlier and accustomed to dirt cheap living whereas americans are just bitter about whats happening to them.

    also, less ethnic diversity abroad. when USA finally hits official turd-world status its going to be race war in the streets

    just as it already is in the poorest areas, yet amplified by the cutting of welfare. all that communist diversity is good propaganda will blow up in your face

    so yeah USA is the most turd-world of them all, do you really want to pay into it
     
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    Last edited: Apr 17, 2011
  16. carrepairs12

    carrepairs12 BANNED BANNED

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    http://www.youtube.com/watch?v=Y4jAq1tsXoA
    lol
     
  17. blackhataffiliate

    blackhataffiliate Senior Member

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    What the hell are you talking about? Sorry, but this does not make any sense and seems to be one of those tweaked out conspiracy theorist rants.
     
  18. khaotikk

    khaotikk Newbie

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    Ouch, quite a hit. I wonder how many new marketers consider taxes when they start affiliate marketing. There should be a thread somewhere on here to help with new affiliates on their taxes, what they can and can't claim, along with tips that might be able to save them a bit of money.
     
  19. richelld

    richelld Junior Member

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    and you seem oblivious
     
  20. wowhaxor

    wowhaxor Executive VIP Premium Member

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    This is why you should file and pay quarterly like you're supposed to, that way it isn't such a big hit once a year.

    And be sure to put aside around 30% in an account for just this, if you run into an emergency you can always tap it and then pay taxes at the end of the year with a small penalty instead.